On June 29, J-Ocean Heavy Industries announced it signed an LOI with a shipowner in Oceania for the construction of four 114,000-ton crude oil and petroleum product tankers.
This LOI is significant as it marks the first shipbuilding agreement since the last vessel was delivered from the Gunsan Shipyard in July 2017. Once a formal contract is finalized, the shipyard will transition from partial operations focused on block production to full shipbuilding once again.
The Gunsan Shipyard, established by HD Hyundai Heavy Industries in 2010, halted full ship production in 2017 due to a global downturn in the shipbuilding industry, delivering its last 114,000-ton oil tanker at that time. Since then, it has only continued limited block production.
On June 26, J-Ocean Heavy Industries signed an asset transfer agreement with HD Hyundai Heavy Industries for the Gunsan Shipyard. The acquisition process is currently underway, and this LOI represents the first business achievement secured even before the completion of the acquisition.
A representative from J-Ocean Heavy Industries stated, "Since the memorandum of agreement (MOA) was signed with Eco Prime Marine Pacific and HD Hyundai Heavy Industries in March, we have received ongoing inquiries about shipbuilding. Currently, there are no outstanding orders for completed vessels at the Gunsan Shipyard, allowing for quick delivery times and the capability to build ultra-large ships, which has attracted significant interest from global shipping companies."
The vessels will be 114,000-ton crude oil and petroleum product tankers developed by HJ Heavy Industries, recognized for enhancing both environmental sustainability and economic efficiency. They are designed to transport not only crude oil but also various petroleum products, allowing for flexible operations based on market conditions and cargo demand, thereby maximizing shipping companies' efficiency and profitability.
Notably, these eco-friendly ships are designed with the latest hull forms and high-efficiency propulsion technologies, achieving over 10% fuel savings compared to existing vessels of the same class. This design effectively addresses the International Maritime Organization's (IMO) environmental regulations by reducing greenhouse gas emissions.
The local economy is also expected to benefit. Once shipbuilding commences, it will not only create direct and indirect employment opportunities but also increase the operational rates of local equipment suppliers and partners, likely restoring the regional shipbuilding ecosystem to pre-disruption levels.
Industry experts believe this LOI signifies more than just securing work. It represents a pivotal shift for the Gunsan Shipyard, moving away from years of block production to a renewed focus on full shipbuilding. The fact that interest from overseas shipowners was confirmed even before the acquisition process is completed raises hopes for additional orders in the future.
A representative from J-Ocean Heavy Industries remarked, "Thanks to the support of the citizens of Gunsan and the people of North Jeolla Province, who have believed in and supported the revival of the Gunsan Shipyard for a long time, we are now able to raise the anchor for full shipbuilding once again. We aim to establish the Gunsan Shipyard as a key hub for global eco-friendly ship production, contributing to the local economy and the advancement of South Korea's shipbuilding industry."
* This article has been translated by AI.
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